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Kyrgyzstan, Centerra deal eases nationalization fears Add to ...

Centerra Gold CG-T and the government of Kyrgyzstan have reached a new ownership agreement for Centerra's Kumtor gold mine, the two sides said yesterday, driving Centerra's shares up 10 per cent as fears that the mine will be nationalized started to fade. Under the new agreement, Kyrgyzstan's stake in Centerra will rise to as much as 33 per cent from 15.66 per cent, as Centerra will issue to the government 18.2 million shares from its treasury, while Cameco CCO-T will transfer up to 25.3 million shares to the government, Centerra said. Cameco's stake will fall to 37.8 per cent from 52.66 per cent. The agreement also will introduce a new simplified tax regime under which gross revenue from the Kumtor mine will be taxed at 14 per cent, and will expand Centerra's existing concession area at the mine. As part of the deal, Centerra will pay the Kyrgyz government $22.4-million. The deal must still be approved by the boards of Cameco and Centerra, and by the Kyrgyz parliament. CG (TSX) rose $1.03 to $7.26. CCO (TSX) rose $1.16 to $25.22.

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